Marine Products Corporation · NYSE:MPX
Marine Products — Baird 2021 Global Industrial Conference
19 slides from Marine Products's conference presentation, Nov 12, 2021
Slide 1: Baird 2021 Global Industrial Conference
Baird 2021 Global Industrial Conference November 11, 2021
Slide 2: Forward Looking Statements and Non-GAAP Disclosure
FORWARD LOOKING STATEMENTS AND NON - GAAP DISCLOSURE 1 Certain statements and information included in this discussion constitute “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 . Such forward - looking statements include statements that look
Slide 3: Corporate Management Team Presenters
CORPORATE MANAGEMENT TEAM PRESENTERS Ben Palmer Chief Financial Officer 20 Years with MPX Jim Landers Vice President - Corporate Services 20 Years with MPX Corporate leadership team is supported by 5 talented managers with deep experience in specialized areas of the marine industry – average tenure
Slide 4: MPX at a Glance
$241 $267 $299 $292 $240 $293 2016 2017 2018 2019 2020 LTM 9/30/2021 MPX AT A GLANCE FINANCIAL SNAPSHOT ($ in millions) x One of the largest manufacturers of fiberglass powerboats in the U.S., with leading market positions across its Chaparral and Robalo brands x Brands are oriented toward fast - gr
Slide 5: Demonstrated Ability to Evolve with Consumer Preferences
DEMONSTRATED ABILITY TO EVOLVE WITH CONSUMER PREFERENCES MPX has evolved with the market into faster growing, premium outboard categories MPX’S EVOLUTION MPX has evolved by utilizing its design and manufacturing expertise and dealer network to capture attractive market opportunities Premium SSi spor
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS Powerful Brand Heritage and Market Leadership 55+ year heritage fostering brand awareness for manufacturing high - quality powerboats Combination of Chaparral’s and Robalo’s outboards holds the #1 market position for outboard boats in their size range Favorable Market Trends Ge
Slide 7: Undisputed Market Leadership Position
19% 12% 11% 8% Other 34% 5% 5% 5% 4% Other 76% UNDISPUTED MARKET LEADERSHIP POSITION _____________________ Source: SSI data. MPX BRANDS HOLD LEADING MARKET SHARE IN THEIR RESPECTIVE CATEGOR IES 18 - 34 ft Sterndrive 18 - 36 ft Outboard 17% 5% #1 Leadership position in 18 - 36 ft outboards through Ro
Slide 8: Highly Regarded, Long-Tenured Marine Enthusiast Brands
HIGHLY REGARDED, LONG - TENURED MARINE ENTHUSIAST BRANDS MPX’s brands are recognized as some of the best on the water Chaparral Boats has an astounding reputation of being solid boat makers. Like we mentioned before, they have been in the industry for half a century. They deliver on their promise of
Slide 9: Broad and Growing Line-Up of Fiberglass Boats
BROAD AND GROWING LINE - UP OF FIBERGLASS BOATS 2022 MODEL YEAR 20 Models 21 - 34 ft. Length Range $47k - $470k Price Range 21 Models 18 - 36 ft. Length Range $41k - $580k Price Range SSI Surf OSX Dual Console Center Console Bay Boat Outboard Sport Fishing Boats Sterndrive and Outboard Pleasure Boat
Slide 10: Significant Room for Growth in the Large and Expanding Fiberglass Market
37.3 41.0 44.0 46.3 49.0 50.9 50.7 58.4 2013 2014 2015 2016 2017 2018 2019 2020 SIGNIFICANT ROOM FOR GROWTH IN THE LARGE AND EXPANDING FIBERGLASS MARKET FIBERGLASS MARKET GROWTH… (Units in Thousands) …SUPPORTED BY GROWING FISHING POPULARITY _____________________ Source: SSI data, Recreational Boatin
Slide 11: Strong Excitement Across Experienced and New Boaters Driving Secular Tailwinds
STRONG EXCITEMENT ACROSS EXPERIENCED AND NEW BOATERS DRIVING LONG - TERM SECULAR TAILWINDS Increasing Activity Levels Large increase in boating participation across all demographics ~85% Of People Are Using Their Boats More Growing and diverse base of consumers turning to marine activities 30%+ Firs
Slide 12: Innovative Technology Leader
INNOVATIVE TECHNOLOGY LEADER EXTENDED V - PLANE HULL Running surface spans the length of the entire boat in contrast to standard sterndrive boats Allows for more deck space, better planing performance and a more comfortable ride Creates superior stability under low speeds Utilized on the Com
Slide 13: MPX's Dealer Footprint
MPX’S DEALER FOOTPRINT 10+ Years Average Dealer Relationship Significant Presence No Presence Highlights Europe Asia Australia Africa (Marine Products) Atlanta, GA (Chaparral) Nashville, GA (Robalo) Nashville, GA P remier dealer network with 260 domestic and 69 international, independent dealers
Slide 14: Facilities Overview
FACILITIES OVERVIEW MPX operates out of five state - of - the - art manufacturing facilities FACILITY SNAPSHOTS MPX’s facilities include 5 manufacturing plants in Nashville, Georgia Facilities are utilized to design new models, fabricate hulls, decks and small fiberglass parts, manufacture inter
Slide 15: Clear Strategic Vision to Continue MPX's Long-Term Growth
CLEAR STRATEGIC VISION TO CONTINUE MPX’S LONG - TERM GROWTH MPX has identified several levers to drive continued growth UPGRADE DEALER RELATIONSHIPS ENHANCE MARKETING EXCELLENCE ENHANCE MARGINS THROUGH EFFICIENCIES TARGET ACCRETIVE STRATEGIC ACQUISITIONS x Selectively strengthen the dealer network a
Slide 16: Capital Stewardship Tailored Towards Shareholders
CAPITAL STEWARDSHIP TAILORED TOWARDS SHAREHOLDERS _____________________ (1) Defined as net cash provided by operations / average total invested capital. (2) MPX spun - off from RPC in February 2001. 23.9% 15.9% 14.3% (9.8%) 12.1% 3.4% 8.9% 11.5% 10.6% 17.1% 18.9% 38.8% 28.6% 39.8% 32.2% 2006 2007 20
Slide 17: Why Invest in MPX
WHY INVEST IN MPX Powerful Brand Heritage with Leading Brands in Best Positioned Product Categories Recognized Industry Innovator with Track Record of Premium Product Performance and Innovation Broad Dealer Network Including Some of the Largest and Most Reputable Dealers in Top Boating Regions Effic
Slide 18: Appendix A – Non-GAAP Reconciliation
APPENDIX A – NON - GAAP RECONCILIATION 17 LTM ($ 000's) 2016 2017 2018 2019 2020 9/30/2021 Reconciliation of Net Income to EBITDA Net Income $16,745 $19,300 $28,488 $28,239 $19,444 $27,572 Add: Income Tax provision 6,662 10,688 7,167 6,219 5,012 7,273 Depreciation and Amortization 1,382 1,526 1,820
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